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  • Writer's pictureKCStark

Don’t Panic: How to Beat Today’s Historic 7.09% Mortgage Rate: A Proactive Buyer’s Guide

Making History: Navigating Today's Mortgage Landscape

Hey, America, welcome 'back to the future' in a mortgage rates last seen in April 2002. With Freddie Mac's recent data pointing to a 30-year fixed mortgage rate of 7.09%, the journey to homeownership has become more intricate, especially when combined with other financial pressures like rising rents and escalating living costs.

Don't Panic: There Are 2 Key Strategies to Help Overcome High Interest Rates

No worries, we can fix that! Ask me 'how to lower your rates' and make a proactive plan for home shopping.

Two Key Strategies for Homebuyers to Lower Your Rates

For the discerning homebuyer, challenges often pave the way for innovation. By tapping into two key strategies, the dream of owning a home in, even in this high-rate environment, can remain within grasp.

Temporary Permanent Buydowns: Lowering Your Costs Like a Pro

Consider a home valued at $500,000. With a conventional loan product, putting down 20% means financing $400,000. A rate of 7.09% might seem daunting, but here's a workaround.

Opt for a buydown: an arrangement where you or the seller pays upfront to temporarily reduce this rate for the early years. For instance, bringing the rate down to 5.09% can translate to significant monthly savings, making the initial phase of your mortgage journey more manageable. Impressive potential in savings!

Leveraging Seller Concessions: Maximizing Your Financial Leverage

In today's 7.09% mortgage climate, sellers might be inclined to offer concessions. On a $500,000 home, even a 2% seller concession equates to $10,000.

This bonus can be allocated towards closing costs, or even combined with a buydown to further reduce your monthly outlay.

Stabilizing Market Dynamics

It's also worth noting that the current rates have caused a unique market situation. Many homeowners are opting to stay put, indirectly stabilizing property prices.

For a proactive buyer, this stability, paired with the strategic use of buydowns and concessions, can be the game-changer in the home buying process.

Are you a home seller in today's market? Home hasn't sold? Speak with your real estate agent about using concession to help make your home more attractive. It could be win-win!

Talk with a Licensed Broker to Learn More

Colorado Springs offers more than scenic beauty; it presents opportunities for the informed homebuyer. By understanding and leveraging the right financial tools, navigating the high-rate mortgage environment can become a journey of strategic triumph.

Let's talk and plan your proactive steps to homeownership today.

U.S. Job Market Shows Promising Trends

June 2023 brought some interesting shifts to the U.S. job market. While job openings slightly decreased, landing at 9.58 million by month's end, the bigger picture is much brighter!

  • For every person looking for a job, there are still a generous 1.6 positions available.

  • To put that in perspective, before the challenges of the Covid-19 pandemic, that number was at 1.2.

  • Even though we saw a brief dip during the pandemic, by March 2022, it had impressively surged to 2.0 amidst the "Great Resignation".

U.S. Job Market Shows Promising Trends

The Federal Reserve remains hopeful.

The FED is keen on achieving a harmonious labor market balance, which will contribute to stable economic growth. So, as we move forward, there's a lot to be optimistic about in the employment sector. Stay strong, America. We've seen worse. We will see better.


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